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What Happens If You Break a Lease? 5 Legal Ways to Exit Early

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Life happens, and sometimes you need to get out of your lease early. Maybe you landed an amazing job across the country, or you just found an apartment that’s a better fit than your current place. Whatever the reason, breaking a lease usually means you’re on the hook for rent until your agreement officially ends.

But here’s the good news: There are ways to get out early without paying the full amount — or sometimes without paying anything extra at all. Read on for more details about what happens if you break a lease early, and how to cut down on your losses if you choose to go sooner rather than later.

How does breaking a lease affect you?

The consequences of breaking a lease are financial, practical and legal: 

  • Financial: In many cases, you’re on the hook for the total rent amount you committed to in your lease, even if you move out early. In others, you can get out by simply paying an early termination fee.
  • Legal: If you refuse to pay the back rent and/or fees, your landlord can sue you.
  • Practical: You may have a harder time renting again in the future, since future landlords could ask for rental references.

Does breaking a lease affect your credit?

Breaking a lease doesn’t affect your credit directly — but if you refuse to pay the penalties and fees you owe for breaking a lease, your credit could suffer. If the landlord sends that debt to collections, your credit could take a significant hit and the derogatory mark will remain on your credit for seven years.

How to get out of a lease the easy way: Pay a fee

The easiest way out of a lease is to pay a fee in return for exiting early. Check your lease for an early termination clause that allows you to break the lease by paying a set fee. This is the cleanest way to exit, since it’s already agreed upon in your contract.

How much does it cost to break a lease?

How much you’ll pay depends in large part on what is written in your lease about penalties. The early termination fee could be the equivalent of a few months’ rent, or you may have to sacrifice your security deposit.

But even if there’s no early termination clause in your lease, you may not be stuck paying rent for the full remainder of the lease term. That’s because, in many states, the landlord is required to make an effort to find a new tenant; once that tenant is in, you’ll be off the hook.

Is my landlord required to find another tenant if I break my lease?

  • Ask your landlord for approval. It’s possible your landlord would be willing to let you out of the lease early, and all you need to do is ask. If you do come to that agreement, make sure to put it in writing.
  • Prove that your landlord is breaking the law. If your landlord fails to maintain habitable conditions, violates local housing codes or breaches other lease terms, you may have legal grounds to break the lease without penalty. You’ll have to document all violations and follow your state’s proper notice procedures.
  • Find a new tenant. If your lease allows you to sublet, you can find a qualified replacement tenant who will take over paying the rent. Or, you may be able to totally exit the lease agreement by passing it over to a new tenant through a lease assignment. Many landlords will waive penalties if you handle the tenant search and the new renter meets their approval criteria.
  • Utilize domestic violence protections. If you’re facing domestic violence, many states give you the right to break a lease without paying any penalties. You may have to show your landlord proof that you’re dealing with domestic abuse, so keep copies on hand of any legal or medical documents related to your situation. 
  • Use military benefits. Active military members can terminate leases without penalty under the Servicemembers Civil Relief Act (SCRA) if they have a permanent change of station or deployment orders. You must give your landlord written notice and documentation of your military orders. This protection is available even if it’s not mentioned in the lease.

Remember to read your lease carefully!

It may well have additional clauses that give you other penalty-free ways out. For instance, some leases include job relocation clauses that kick in if you’re transferred farther than a certain distance (typically 50 or 100 miles away). If you don’t go through your lease with a fine-toothed comb, you could end up wasting thousands of dollars.